You have $10,000 in your savings account. What can you do to grow it?
Your savings account might be paying interest on your savings but with an average interest rate of less than 1 percent, there isn’t much to earn.
The best, and perhaps only practical way, to grow your money is to invest. It’s no wonder that most of America’s wealthiest people are investors.
However, the world of investing isn’t clear-cut. It’s shrouded with investing myths that misinform and confuse beginner investors like you. That’s why, in this article, we’re debunking, some of the most common investing myths that exist today.
Your 30s Is the Best Age to Start Investing
It’s true that most people start investing in their 30s. However, it’s not because this is the best age to start making investments.
There’s a clear reason why most beginner investors are in their 30s. You need money to start investing, so by age 30, most people would be in jobs or businesses that are paying off. As such, it’s easier to put some money aside for investing.
In truth, there is nothing like the best age to start investing. As long you have capital and investing knowledge, you can invest. If you’re in doubt, consider the case of Warren Buffett, who made his first investment at the tender age of 11.
You Need a Lot of Money to Start Investing
There’s a correlation between this myth and the best age to start investing myth. Most people believe that they need a substantial amount of money to start investing, which is why even people who start earning in the early 20s will wait to accumulate some money, which goes well into their 30s, to feel like they have enough capital to start investing.
Make no mistake. Good capital is key to making a successful investment.
This, though, isn’t to say you can’t get started with as little as 100 bucks. You can!
You just need to find investments, such as penny stocks, that suit your budget at the time. So, if you’ve been thinking you need thousands of dollars to be able to invest in Amazon or Apple stock, you’ve been wrong all the while. A few 100 bucks will get you in the game.
Some forms of precious metals are also easily affordable. Learn more about how can buy silver cheaply, for example.
There Are Get-Rich-Quick Investments
Of all the investing myths, this one is getting harder to debunk, especially to a new generation of investors that’s crazy about investing in crypto.
As a rule of thumb, investing isn’t a way to get rich quickly. It takes time for any legitimate investment opportunity to realize good returns. Whether you’re investing in stocks, precious metals, or real estate, you must be patient.
However, the introduction of the cryptocurrency market has seen some people become multi-millionaires overnight. Even some stocks have recorded over 500 percent increase in less than a year.
You can get rich quickly in such a market, but also keep in mind that the high volatility can wipe off your capital just as quickly.
Ignore These Investing Myths
Investing is the path to wealth and financial freedom. However, to be a successful investor, you need to be knowledgeable. Bes sure to ignore these investing myths as you start investing.
Keep tabs on our blog for more investing advice.